PCTEL INC (PCTI) Stock Fundamental Analysis
USA - NASDAQ:PCTI - US69325Q1058 - Common Stock
6.99 USD
-0.01 (-0.14%)
6.99 USD
0 (0%)
PCTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. PCTI has an excellent financial health rating, but there are some minor concerns on its profitability. PCTI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PCTI had positive earnings in the past year.
PCTI had a positive operating cash flow in the past year.
PCTI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PCTI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PCTI (5.13%) is better than 76.27% of its industry peers.
PCTI's Return On Equity of 6.31% is fine compared to the rest of the industry. PCTI outperforms 71.19% of its industry peers.
PCTI has a better Return On Invested Capital (4.25%) than 62.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCTI is significantly below the industry average of 13.71%.
The last Return On Invested Capital (4.25%) for PCTI is above the 3 year average (2.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.31% | ||
| ROIC | 4.25% |
ROA(3y)2.45%
ROA(5y)-0.83%
ROE(3y)3.09%
ROE(5y)-0.82%
ROIC(3y)2.82%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 4.90%, PCTI is doing good in the industry, outperforming 66.10% of the companies in the same industry.
In the last couple of years the Profit Margin of PCTI has declined.
PCTI has a Operating Margin of 4.37%. This is comparable to the rest of the industry: PCTI outperforms 59.32% of its industry peers.
In the last couple of years the Operating Margin of PCTI has grown nicely.
With a decent Gross Margin value of 48.68%, PCTI is doing good in the industry, outperforming 71.19% of the companies in the same industry.
PCTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.37% | ||
| PM (TTM) | 4.9% | ||
| GM | 48.68% |
OM growth 3Y-2.07%
OM growth 5Y17.43%
PM growth 3Y-11.4%
PM growth 5Y-6.84%
GM growth 3Y0.12%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PCTI is destroying value.
PCTI has more shares outstanding than it did 1 year ago.
PCTI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.12 indicates that PCTI is not in any danger for bankruptcy at the moment.
PCTI's Altman-Z score of 6.12 is amongst the best of the industry. PCTI outperforms 91.53% of its industry peers.
The Debt to FCF ratio of PCTI is 0.02, which is an excellent value as it means it would take PCTI, only 0.02 years of fcf income to pay off all of its debts.
PCTI's Debt to FCF ratio of 0.02 is amongst the best of the industry. PCTI outperforms 88.14% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that PCTI is not too dependend on debt financing.
PCTI has a Debt to Equity ratio of 0.00. This is in the better half of the industry: PCTI outperforms 74.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.5
WACC8.53%
2.3 Liquidity
A Current Ratio of 5.19 indicates that PCTI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.19, PCTI belongs to the best of the industry, outperforming 89.83% of the companies in the same industry.
PCTI has a Quick Ratio of 3.85. This indicates that PCTI is financially healthy and has no problem in meeting its short term obligations.
PCTI's Quick ratio of 3.85 is amongst the best of the industry. PCTI outperforms 88.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
The earnings per share for PCTI have decreased by -7.89% in the last year.
Measured over the past years, PCTI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.07% on average per year.
PCTI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.72%.
Measured over the past years, PCTI shows a small growth in Revenue. The Revenue has been growing by 1.69% on average per year.
EPS 1Y (TTM)-7.89%
EPS 3Y-3.68%
EPS 5Y10.07%
EPS Q2Q%-100%
Revenue 1Y (TTM)-12.72%
Revenue growth 3Y3.14%
Revenue growth 5Y1.69%
Sales Q2Q%-33.09%
3.2 Future
Based on estimates for the next years, PCTI will show a decrease in Earnings Per Share. The EPS will decrease by -7.80% on average per year.
The Revenue is expected to decrease by -3.06% on average over the next years.
EPS Next Y-29.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.62%
Revenue Next 2Y-3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.97, PCTI is valued on the expensive side.
PCTI's Price/Earnings ratio is a bit cheaper when compared to the industry. PCTI is cheaper than 61.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, PCTI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.58, PCTI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCTI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, PCTI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCTI is valued a bit cheaper than 74.58% of the companies in the same industry.
PCTI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PCTI is cheaper than 83.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
PCTI has a very decent profitability rating, which may justify a higher PE ratio.
PCTI's earnings are expected to decrease with -7.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y-7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PCTI has a Yearly Dividend Yield of 3.15%.
Compared to an average industry Dividend Yield of 3.64, PCTI pays a better dividend. On top of this PCTI pays more dividend than 89.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PCTI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of PCTI has a limited annual growth rate of 0.90%.
PCTI has paid a dividend for at least 10 years, which is a reliable track record.
PCTI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.9%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
PCTI pays out 97.89% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of PCTI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP97.89%
EPS Next 2Y-7.8%
EPS Next 3YN/A
6.99
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners0.34%
Inst Owner Change0%
Ins Owners5.47%
Ins Owner Change0%
Market Cap135.26M
Analysts43.33
Price Target7.14 (2.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.22
Dividend Growth(5Y)0.9%
DP97.89%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.38%
Min EPS beat(2)-100%
Max EPS beat(2)128.76%
EPS beat(4)2
Avg EPS beat(4)40.52%
Min EPS beat(4)-100%
Max EPS beat(4)135.29%
EPS beat(8)6
Avg EPS beat(8)75.74%
EPS beat(12)9
Avg EPS beat(12)66.61%
EPS beat(16)11
Avg EPS beat(16)55.36%
Revenue beat(2)0
Avg Revenue beat(2)-9.21%
Min Revenue beat(2)-16.83%
Max Revenue beat(2)-1.58%
Revenue beat(4)1
Avg Revenue beat(4)-5.15%
Min Revenue beat(4)-16.83%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)4
Avg Revenue beat(16)-2.24%
PT rev (1m)0%
PT rev (3m)-22.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)99900%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 | ||
| P/S | 1.56 | ||
| P/FCF | 14.1 | ||
| P/OCF | 12.19 | ||
| P/B | 2.01 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)0.35
EY5.01%
EPS(NY)0.36
Fwd EY5.11%
FCF(TTM)0.5
FCFY7.09%
OCF(TTM)0.57
OCFY8.21%
SpS4.49
BVpS3.48
TBVpS3.14
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.31% | ||
| ROCE | 5.37% | ||
| ROIC | 4.25% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 9.78% | ||
| OM | 4.37% | ||
| PM (TTM) | 4.9% | ||
| GM | 48.68% | ||
| FCFM | 11.04% |
ROA(3y)2.45%
ROA(5y)-0.83%
ROE(3y)3.09%
ROE(5y)-0.82%
ROIC(3y)2.82%
ROIC(5y)N/A
ROICexc(3y)5.1%
ROICexc(5y)N/A
ROICexgc(3y)5.89%
ROICexgc(5y)N/A
ROCE(3y)3.57%
ROCE(5y)N/A
ROICexcg growth 3Y-1.03%
ROICexcg growth 5Y22.36%
ROICexc growth 3Y-3.65%
ROICexc growth 5Y21.11%
OM growth 3Y-2.07%
OM growth 5Y17.43%
PM growth 3Y-11.4%
PM growth 5Y-6.84%
GM growth 3Y0.12%
GM growth 5Y1.61%
F-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 59.68% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 175.36% | ||
| Profit Quality | 225.12% | ||
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z | 6.12 |
F-Score6
WACC8.53%
ROIC/WACC0.5
Cap/Depr(3y)75.25%
Cap/Depr(5y)71.31%
Cap/Sales(3y)2.92%
Cap/Sales(5y)2.91%
Profit Quality(3y)686.53%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.89%
EPS 3Y-3.68%
EPS 5Y10.07%
EPS Q2Q%-100%
EPS Next Y-29.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.72%
Revenue growth 3Y3.14%
Revenue growth 5Y1.69%
Sales Q2Q%-33.09%
Revenue Next Year-14.62%
Revenue Next 2Y-3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y44.49%
EBIT growth 3Y1%
EBIT growth 5Y19.42%
EBIT Next Year-3.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.91%
FCF growth 3Y-27.21%
FCF growth 5Y-11.92%
OCF growth 1Y21.05%
OCF growth 3Y-27.57%
OCF growth 5Y-14.29%